Apple Computer’s latest iPod Nano costs almost US$18 less to make than the previous version, a breakdown of the portable music player’s components revealed.

A teardown analysis performed by market researcher iSuppli found that Apple reduced the cost of materials for the 4GB Nano to US$72.24 from US$89.97 for the previous 2GB device. The computer maker managed to get more capabilities for less in the device through design changes and component price declines, iSuppli said.